Outlook for Warrington upgraded by Moody’s

Ratings agency Moody’s has maintained its A-ratings for two UK local authorities, and upgraded the outlook for one of them. The agency has awarded an “A1 issuer” and “long-term senior unsecured debt” rating for Warrington Borough Council and an “Aa3 issuer rating” for Lancashire County Council.
The agency changed Warrington’s outlook from “negative” to “stable”, partly due to a slower accumulation of debt than previously expected.
Moody’s said that Warrington’s debt is “now expected to reach up to 3.3x gross operating revenues by 2019–20 compared to 4.5x in earlier projections. 
“This is primarily due to lower projected demand for drawdowns on WBC’s loan facilities to housing associations.”
Lancashire’s outlook remains “negative” despite an announcement from the council that it needs to save less by 2021–22 than originally anticipated.
The agency said the council would need to make “significant drawdowns on usable reserves expected in order to balance the council’s budgets” by that date.